Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A.
b. Purchases and sales of forestry and air rights.
c. Foreign purchases of Nation A's Treasury bills.
d. All the above.
.B
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The Fed affects aggregate demand through monetary policy by changing
A) tax rates on only interest income and so influencing disposable income. B) government expenditure and so influencing the budget balance. C) the quantity of reserves and determining government expenditure. D) tax rates and influencing disposable income. E) the federal funds rate and the quantity of reserves.
Financial intermediaries:
a) increase transaction costs. b) increase information costs. c) increase overall risk to savers in order to make more money. d) allow a greater flow of funds between savers and investors.